General Laws of Massachusetts - Chapter 40D Industrial Development of Cities and Towns - Section 18 Deposit of funds; reports and financial statements; audits

Section 18. All monies of any authority from whatever source derived shall be paid to the treasurer of the authority, except the proceeds of bonds and rentals or other revenues from a project or under a financing document which secures bonds, which shall be paid as provided in the trust agreement securing such bonds. Such monies shall be deposited in the first instance by the treasurer in one or more banks or trust companies in one or more special accounts, and each of such special accounts to the extent the same is not insured shall be continuously secured by a pledge of direct obligations of the United States of America, of the commonwealth or of the municipality in which the authority is established, having an aggregate market value exclusive of accrued interest, at all times at least equal to the balance on deposit in such account. Such securities shall either be deposited with the treasurer, or be held by a trustee or agent satisfactory to the authority. All banks and trust companies are authorized to give such security for such deposits. The monies in said accounts shall be paid out on the warrant or other order of the chairman of the authority, or of such other person or persons as the authority may authorize to execute such warrants or orders. Every authority shall file an annual report with the Massachusetts office of business development and with the municipality creating the authority on forms prepared and distributed by the said department. Every authority in a municipality which has issued bonds under this chapter shall have its books, accounts and records audited annually by a certified public accountant and a copy of his audit report shall be attached to and be made a part of the aforesaid annual report. A concise financial statement shall be published annually, at least once in a newspaper of general circulation in the city or town in which the principal office of the authority is located. If such publication is not made by the authority, the city or town shall publish such statement at the expense of the authority. If the authority fails to make such an audit, then the controller, auditors or accountant designated by the municipality are hereby authorized and empowered from time to time to examine at the expense of the authority the accounts and books of the authority, including its receipts, disbursements, contracts, financing documents, sinking funds, investments and other matters relating to its finances, operations and affairs.

The state auditor shall have the right to examine the books, accounts and records of any authority.

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Last modified: September 11, 2015